Correlation Between AVIC Fund and Tianshui Huatian
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By analyzing existing cross correlation between AVIC Fund Management and Tianshui Huatian Technology, you can compare the effects of market volatilities on AVIC Fund and Tianshui Huatian and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AVIC Fund with a short position of Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVIC Fund and Tianshui Huatian.
Diversification Opportunities for AVIC Fund and Tianshui Huatian
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AVIC and Tianshui is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding AVIC Fund Management and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec and AVIC Fund is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AVIC Fund Management are associated (or correlated) with Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of AVIC Fund i.e., AVIC Fund and Tianshui Huatian go up and down completely randomly.
Pair Corralation between AVIC Fund and Tianshui Huatian
Assuming the 90 days trading horizon AVIC Fund is expected to generate 20.47 times less return on investment than Tianshui Huatian. But when comparing it to its historical volatility, AVIC Fund Management is 11.54 times less risky than Tianshui Huatian. It trades about 0.12 of its potential returns per unit of risk. Tianshui Huatian Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 780.00 in Tianshui Huatian Technology on September 5, 2024 and sell it today you would earn a total of 417.00 from holding Tianshui Huatian Technology or generate 53.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AVIC Fund Management vs. Tianshui Huatian Technology
Performance |
Timeline |
AVIC Fund Management |
Tianshui Huatian Tec |
AVIC Fund and Tianshui Huatian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AVIC Fund and Tianshui Huatian
The main advantage of trading using opposite AVIC Fund and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVIC Fund position performs unexpectedly, Tianshui Huatian can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.AVIC Fund vs. Industrial and Commercial | AVIC Fund vs. Kweichow Moutai Co | AVIC Fund vs. Agricultural Bank of | AVIC Fund vs. China Mobile Limited |
Tianshui Huatian vs. Cultural Investment Holdings | Tianshui Huatian vs. Gome Telecom Equipment | Tianshui Huatian vs. Bus Online Co | Tianshui Huatian vs. Holitech Technology Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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